Furlough estimate
05-01-2020, 08:42 AM
#173
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Joined APC: May 2010
Position: Awa(k3rE3
Posts: 213
So from the earnings call 2 things were of interest to me:
1. SK claimed no current plans to close any bases
2. Daily cash burn of 40M/day for Q2 and 3, with plans in place to reduce to 20M/day for Q4. The reduction will come almost solely from employee costs so basically halving employee costs post Sep 30.
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1. SK claimed no current plans to close any bases
2. Daily cash burn of 40M/day for Q2 and 3, with plans in place to reduce to 20M/day for Q4. The reduction will come almost solely from employee costs so basically halving employee costs post Sep 30.
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05-01-2020, 08:52 AM
#174
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Joined APC: Oct 2010
Posts: 2,639
SK mentioned that in the context IF revenue is still essentially zero in Q4.
05-01-2020, 09:26 AM
#177
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Joined APC: Jun 2007
Posts: 281
They also said no plan (right now) to permanently park any fleet ... caveat for the whole call was if demand comes back ... if not, then everything is on the table, no sacred cows.
They spent a considerable amount of time convincing the bankers that liquidity isn’t a problem, even if there is zero net revenue, and if that lingers, they have a “plan on the shelf” to maintain liquidity thru 2021 or beyond ... their goal is to be get to the other side with less debt than anybody else ... I think they were trying to calm any BK fears.
They spent a considerable amount of time convincing the bankers that liquidity isn’t a problem, even if there is zero net revenue, and if that lingers, they have a “plan on the shelf” to maintain liquidity thru 2021 or beyond ... their goal is to be get to the other side with less debt than anybody else ... I think they were trying to calm any BK fears.
05-01-2020, 09:36 AM
#178
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Joined APC: Oct 2010
Posts: 2,639
I also liked how they danced around the issue of Milage Plus and its worth as an unencumbered asset. UAL does not break out that value out nor include it in its list of unencumbered assets.
This is a good question since last week an analyst wrote a note valuing the Delta SkyMIles program as being worth $25B.
No straight answer was offered, but it's undoubtably a big number.
This is a good question since last week an analyst wrote a note valuing the Delta SkyMIles program as being worth $25B.
No straight answer was offered, but it's undoubtably a big number.
05-01-2020, 10:23 AM
#179
Gets Weekends Off
Joined APC: Jul 2014
Posts: 812
So from the earnings call 2 things were of interest to me:
1. SK claimed no current plans to close any bases
2. Daily cash burn of 40M/day for Q2 and 3, with plans in place to reduce to 20M/day for Q4. The reduction will come almost solely from employee costs so basically halving employee costs post Sep 30.
Sent from my SM-G930V using Tapatalk
1. SK claimed no current plans to close any bases
2. Daily cash burn of 40M/day for Q2 and 3, with plans in place to reduce to 20M/day for Q4. The reduction will come almost solely from employee costs so basically halving employee costs post Sep 30.
Sent from my SM-G930V using Tapatalk
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